PARAGRAPH 411-SURFACE-COATED PAPER. answer is based on the statistics of Government Census of 1910. Surface coated papers manufactured in this country, 104,200 tons. Imported, 3,098 tons. (The chairman interposing). At what do you fix the consumption of that particular paper in this country?" Answer. "The consumption is about 110,000 tons, and the revenue that will be produced will be about $1,500,000, whereas during the year ending June 30, 1912, the revenue was $277,585.” The Treasury reports show year ending June 30, 1912: Surface-coated, embossed, printed, etc., at 5 cents per pound and 20 per cent ad valorem, $246,765 (ad valorem rate, 41.77 per cent); surface-coated, embossed, o. n. s. p. f. at 5 cents per pound, $305,354 (ad valorem rate, 56.72 per cent); total, $552,119. And to find a warrant to enable him to make the answer that only 2 per cent of his (Williams) product of surface-coated papers are imported, he uses the census report of 1910, page 2192; 104,200 tons produced here, which includes all classes of surface-coated papers, such as coated book and catalogue papers, which are not imported and which undoubtedly represent at least 90 per cent of the surface-coated papers made in this country, while 3,098 tons imported represent surface-coated papers for boxes, upon which class of paper inquiries were being answered. Page 2195 (question by Mr. Hammond): "Thirty-nine per cent, is it not?" Mr. W.: Well, 39 cents is the excess of labor cost," etc., "and we are asked to pay a duty of $1.35 a ream to protect that 39 cents. It is useless to say to you, gentlemen, there is absolutely none imported." By the witness's own testimony, he is an importer of these very goods. The Treasury records show they are imported. Further, page 2197. (Question, Mr. Fordney:) "Would it make any difference to your profits?" Mr. W.: "No, sir," etc. But the paper-box manufacturers are buying their covering paper from abroad. Further, the witness, although making use of and acknowledging our table of comparative costs here and abroad, and accepting the figures for labor, 39 cents, overlooks the other items of costs as per table below, showing total difference of $1.10 per ream in cost of production. You will note in proposal for amending paragraph 411, the duty of 50 per cent is asked for on common ordinary surface-coated papers, while on the real luxurious articles in surface-coated papers, such as embossed, printed, covered with metal, etc., only a duty of 30 per cent is asked. Imitation gold paper is mentioned for obvious effect, cost $1.65 per ream, but no mention of leaf gold papers, imported largely, costing from $10 to $30 per ream, is made. Embossed papers require the present combined specific and ad valorem rates, since, as compared with the plain surface-coated papers, the embossing is purely a question of additional labor; the effects are produced by machines and engraved rolls, costing abroad about one-half of the cost in this country, and the Treasury records show that embossed papers and other specially provided for surface-coated papers are imported in quantities. The special reference to the alleged enormity of the clause, "Papers including wrapping papers with surface decorated or covered with a design, etc., 4 cents a pound," shows conclusively that it had a most proper and desired effect in classifying distinctly papers that were imported under the Dingley tariff as wrapping paper, or papers not specially provided for, at a duty of 25 per cent ad valorem and used in most instances, as they are to-day, for fancy-box covering, fancy articles, and wrappers for other luxuries. C. W. W. "We appeared before the Finance Committee of the Senate and we proved to them that these statements made to them by the domestic manufacturers were grossly exaggerated, to say the least." To this we take strong exceptions. PARAGRAPH 411-SURFACE-COATED PAPER. Our statements are a matter of record and we can vouch for their absolute correctness, as shown by tables of comparative costs, labor, etc. The truth is, that when it was found our statements could not be controverted, it was endeavored to show by samples and testimony that friction-glazed papers made here were as good as flint made abroad, and were coming into general use, and therefore the extra protection on flinted papers was not needed. And through special work and efforts of our opponents the phraseology was made as weak and indistinct in the Senate paragraph as the corresponding paragraph of the Dingley tariff, which had caused much annoyance to customhouse officials and had resulted in conflicting court decisions, and under these conditions we can readily see why the conference committee accepted the phraseology of House tariff bill, paragraph 411. Mr. Staber, states in part: "The next is in relation to papers with coated surfaces. Mr. Williams went thoroughly into that subject, and I agree with him in everything he said there, except that I think 50 per cent ad valorem is too high a duty.' Our answers to this gentleman's testimony and claims are covered completely in our answers to Mr. Williams. Coming to the testimony offered by George H. Tompkins and H. A. Crafts as representing the paper-box making industry, and confirming and upholding the testimony and claims of Mr. Williams, we can only deduce the value thereof from the questions asked by members of your honorable committee. It is evident that only selfish interests were at stake, and none of their claims could be substantiated by acceptable, positive testimony, and it is rather a remarkable position for manufacturers of paper boxes to take who are not making necessities as a whole, but mostly luxuries used as containers to embellish and encourage the sale of articles, usually protected goods. Frequent reference has been made in opposing testimony offered against us, both in 1908-9 and at the recent hearings, as to the ratings of the manufacturers of surface-coated papers in the commercial agency books, of such as the Dun and Bradstreet companies. We are willing to refer to these ratings and any detailed reports they may furnish, which we are positive will show conclusively that there is not a branch of business in this country where most of the manufacturers have conducted their business carefully and conservatively in periods of from 30 to 60 years, will show less profits and accumulated wealth. From the testimony and briefs offered demanding changes in phraseology and reduction of duties, it is apparent that only selfish interests of a few are at stake, without regard to the general welfare of the workingman and the country at large. Tables presented show reductions in importations of surface-coated papers, especially for the year 1912. This year has shown the least demand in many years for colored or fancy surface-coated papers. Manufacturers, to show new effects, are having their boxes covered with domestic and imported uncoated papers. This is a wellknown fact in the trade. And if the changes and reductions in duties asked for are granted, those importers now asking would be the first to suffer the consequences, as we feel assured that as soon as the protection bar is let down the country will be flooded with direct agents of the foreign manufacturers, selling direct, with profit only to the foreign manufacturer. The whole buisness will be demoralized and the manufacturers of surface-coated papers in this country compelled to reduce their production at the cost and to the detriment of the home labor and production. Respectfully submitted. Doty & Scrimgeour (Inc.), New York, N. Y.; Louis Dejonge & Co. (Inc.), JANUARY, 1913. PARAGRAPH 411-SURFACE-COATED PAPER. BRIEF ON SURFACE-COATED PAPERS. SCHEDULE M. Hon. OSCAR W. UNDERWOOD, SAUGERTIES, N. Y., January 16, 1913. Chairman Committee on Ways and Means, House of Representatives, Washington, D. C., 321 House of Representatives Office Building. MY DEAR SIR: There are 72 coated-paper and coated-board manufacturers in the United States, with a normal output per day of 14,114 tons-actual output, 13,469 tons as against 8,000 tons in 1909. 1909, 100 per cent shipped of made. 1910, 99 per cent shipped of made. 1911, 99 per cent shipped of made. 1912, 98 per cent shipped of made. Thus showing there is more coated papers and coated boards being produced than are sold. The increase in manufacturing has been at about 20 per cent per year for past four years, which increase is greater than consumption. A number of new mills are being erected in this country, in fact, the tendency is to build mills faster than consumption can care for same. The percentage of profits are ranging from 5 per cent to 8 per cent. The investment in buildings, machinery, and stock is large and constantly have to be improved. Probably not to exceed one-fourth of the profits can be taken from the business, and the balance allowed to remain in the business for upkeep and maintenance of plant. The price of coated papers are approximately 20 per cent lower than they were in 1902. The price of practically every material entering in the production of coated papers are higher. Average advance in all materials, 10 per cent. Average advance in wages, 20 per cent. Some improvements have been made in machinery during these years, but not sufficient to overcome this difference. Germany is a large producer of coated paper and coated boards, and if the tariff were lowered on coated papers and coated boards below as is contained in paragraph 411, it would enable that country, with similar labor costing not to exceed 33 per cent of what is paid by the manufacturers of this country, to place their goods here to the exclusion of ours. The foregoing data is given by the writer after 25 years' actual experience in the management, manufacturing, and sale of coated papers and coated boards. Therefore we request the Committee on Ways and Means to continue the tariff on articles covered by paragraph 411 as it is. Yours, very truly, THE MARTIN CANTINE Co., Per MARTIN CANTINE, President. PHILADELPHIA, January 15, 1913. MR. OSCAR W. UNDERWOOD, Chairman, Committee on Ways and Means, House of Representatives, Washington, D. C. DEAR SIR: In reference to Schedule M in the present Payne-Aldrich tariff law and section of the same relating to surface-coated papers and papers coated with metal or its solutions, also printed papers and papers with embossed or decorated surfaces, we desire to present the following facts: The hardship of the excessive duties on the above-mentioned lines has left only a few importers still in a position to continue the importing business on these goods. This condition is due to the fact that the duties assessed are prohibitive rather than protective. We respectfully ask your consideration of putting surface-coated glazed papers with embossed surfaces, printed papers, and all similar classes of papers used by the paper-box-manufacturing industry on a reasonable and equitable basis, 78959°-VOL 5-13-12 PARAGRAPH 411-SURFACE-COATED PAPER. which will legitimately protect our home industries and at the same time give the importer an opportunity for fair competition. We suggest a straight ad valorem duty of 50 per cent on such lines above mentioned. All metal-coated paper or papers coated with a metal solution, a straight ad valorem duty of 20 per cent. The majority of these leaf-metal-coated papers which are brought into this country are used by the paper-box-manufacturing industry, and the peculiar process by which these papers are made is such that the paper can only be produced by a certain class of help trained in this line, which help is always centered in Germany, and therefore all of these papers are produced by the German manufacturers alone. This line is not, therefore, competitive with American industries, nor will a fair duty cause unjust competition or will it work any hardship on any substitute paper of American origin. The goods stand in a class by themselves. All of the lines of paper mentioned in the above paragraphs represent commodities which are not complete in themselves when they arrive in this country, but must either be printed on, pasted onto a box, or manipulated in some other way by American labor before any of the papers can be sold into the consuming market. We submit the above data for your very careful consideration and thank you in advance for your attention to the same, and also will be pleased to hold ourselves open to your call if there is further data or information which we, as an importing house of many years' standing, may serve you with. Yours, very truly, Hon. OSCAR W. UNDERWOOD, Chairman, Ways and Means Committee, CHARLES BECK COMPANY. SALEM, MASs., January 11, 1913. House of Representatives, Washington. DEAR SIR: We wish to call attention to what seems to us a glaring inequality in the present tariff on paper goods. We are mailing you a sample of a checkerboard which we import from London, and on which the appraisers have assessed the duty under paragraph 411, Schedule M, of 5 cents per pound and 30 per cent ad valorem, as surface-coated paper. This is equivalent to a duty of at least 160 per cent. You will note that the article is made of strawboard covered with surfacecoated paper, and we submit that it is a most unjust and extraordinary appraisal under the circumstances, particularly as paragraph 418 provides that all paper boxes covered with surface-coated paper are assessed at 45 per cent ad valorem. As you know that boxes are made of identically the same material as the checkerboard in question (that is. with strawboard or newsboard base covered with surface-coated or other finishing paper), we do not believe that it was the intntion of Congress that these checkerboards should be assessed at any higher rate at least, and we believe they should come in under paragraph 420, as manufactures of paper not specially provided for, at 35 per cent. We take the liberty of calling your attention to this inequality, in hopes that in framing the new tariff the intent may be so expressed that we may be relieved of this extortionate impost. Very truly, yours, Hon. O. W. UNDERWOOD, Chairman, Committee on Ways and Means, PARKER BROS. (INC.). E. H. PARKER. W. H. CRITCHLEY, NEW YORK, January 3, 1913. House of Representatives, Washington, D. C. SIR: Understanding that it is your desire to frame a tariff schedule that will be fair and equitable to our home manufacturers and to provide a source of revenue for the Government, I respectfully submit to your attention the item "surface-coated paper,” paragraph 411 of the present tariff law. PARAGRAPH 411-WRAPPING PAPER. The duty on this paper is now 5 cents per pound. The paper in question is used for the finer class of printing and can be sold at the mills here for less than 5 cents per pound. This high duty is, of course, prohibitive and prevents the Government getting any revenue and at the same time allows the manufacturer to impose on the consumer by compelling him to pay a higher price for this class of paper. The advance in price and restrictions in outputs has advanced the price about 25 per cent, for example, formerly the minimum basis of weight per ream was 60 pounds for a ream of 25 by 38. They have recently advanced the minimum to 70 pounds and added 25 cents per 100 pounds to the price. This paper is sold by the weight. The paper known as "gummed paper," and now classified as "surface-coated paper," formerly paid duty of 25 per cent; under the new tariff it is 5 cents per pound, making the duty over 70 per cent, an increase of nearly 200 per cent, which has decreased the imports to comparatively nothing. W. H. CRITCHLEY. Respectfully, WRAPPING PAPER. BRIEF OF KERN COMMERCIAL CO., NEW YORK, N. Y. Hon. OSCAR W. UNDERWOOD, KERN COMMERCIAL CO., New York, January 16, 1913. House of Representatives, Washington, D. C. DEAR SIR: Paragraph 411, item, Papers, including wrapping papers with surface decorated or covered with a design, fancy-effect pattern, or character, whether produced in the pulp or otherwise, but not by lithographic process." Under the present tariff these take a duty of 44 cents per pound. This provision is of too general a character and puts on some classes of cheap wrapping paper a most excessive duty. We respectfully suggest that wrapping papers, whether plain or decorated, should be permitted at the same duty, viz, 35 per cent, or else that decorated wrapping papers be admitted at a duty of 5 per cent additional to that assessed on the plain papers. We are submitting samples. A, known as sealing paper, costing in Sweden $2.80 per 100 pounds, under the present tariff carries a duty of 35 per cent ad valorem, viz, 98 cents per 100 pounds, whereas the same paper, sample B, decorated merely with ordinary lines, costing in Sweden the same price as the plain paper, viz, $2.80 per 100 pounds, takes a duty of 4 cents per pound, which is over 160 per cent ad valorem. This paper is but an ordinary wrapping paper, such as is used by grocers, dry-goods merchants, and retailers of teas and similar goods. That a duty of 160 per cent is excessive and can not be necessary is proven by the fact that at the present time a similar paper, manufactured in the United States by a number of mills, is sold to the trade at 4 cents per pound, a price which is less than the duty assessed on the imported paper. If the domestic mills are able to produce such paper at a profit at 4 cents per pound it does not seem reasonable to assess on it a duty that is higher than the selling price in the American market. Paragraph 411. Item: "Parchment papers, greaseproof papers, and imitation parchment papers, which have been supercalendered and rendered transparent, or partially so, by whatever name known." The present specific duty on cheap grades of imitation parchment or imitation greaseproof papers, which are the papers of this class most largely used for various wrapping purposes, such as on biscuits, meats, and other foodstuffs, is equivalent to 81 per cent. We attach sample marked "C," costing in Sweden $2.82 per 100 pounds, duty 2 cents per pound plus 10 per cent ad valorem-$2.28, equals 81 per cent. A proof that this duty is exorbitant is that the selling price of the product of the American mills at the present time is in the neighborhood of 4 cents per pound. Item: "Glassine or parchmyn papers." These come under the heading of papers which have been supercalendered and rendered transparent, or partially so. Sample marked "D," costs abroad $3.81 per 100 pounds, duty 2 cents per pound plus 10 per cent ad valorem-$2.38, equals 62.4 per cent. Sample "E" |